Board Acknowledges Attorney General in S&P Settlement
The Attorney General of Iowa announced this morning a joint state-federal settlement agreement with Standard & Poor's Ratings Services (S&P). The $1.375 billion settlement is the result of lawsuits filed by the Iowa Attorney General and 19 other states, with the Department of Justice, over allegations that S&P misled investors and market participants, including Iowans, when it fraudulently rated structured finance securities in the lead-up to the 2008 financial crisis.
This impacted investments in the Teachers Insurance and Annuity Association-College Retirement Equities Fund (TIAA-CREF) and Iowa Public Employees' Retirement System (IPERS) at the University of Iowa, Iowa State University and the University of Northern Iowa as they relied on S&P's ratings for some investment decisions.
With the settlement agreement announced by the AG's office today, $2.5 million will be directed to the TIAA-CREF retirement accounts of employees at the three universities. In addition, the Attorney General's office will be distributing $10 million to IPERS, which includes accounts for Regent employees. "We appreciate the work of Attorney General Tom Miller in the settlement of this major lawsuit," said Board of Regents President Bruce Rastetter.
"We especially thank Attorney General Miller for recognizing the impact of the S&P issue on the universities' retirement systems."
For More Information:
Contact: Robert Donley, Executive Director, 515-281-3934